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SNBR (Sleep Number) Degree of Operating Leverage : -52.75 (As of Mar. 2025)


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What is Sleep Number Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sleep Number's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -52.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Sleep Number's Degree of Operating Leverage or its related term are showing as below:

SNBR's Degree of Operating Leverage is ranked better than
94.55% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.215 vs SNBR: -52.75

Sleep Number Degree of Operating Leverage Historical Data

The historical data trend for Sleep Number's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sleep Number Degree of Operating Leverage Chart

Sleep Number Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.97 0.26 20.08 6.17 0.03

Sleep Number Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.27 8.77 8.77 0.03 -52.75

Competitive Comparison of Sleep Number's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Sleep Number's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sleep Number's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sleep Number's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Sleep Number's Degree of Operating Leverage falls into.


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Sleep Number Degree of Operating Leverage Calculation

Sleep Number's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 19.18 (Mar. 2025) / 2.551 (Mar. 2024) - 1 )/( 1605.108 (Mar. 2025) / 1831.404 (Mar. 2024) - 1 )
=6.5186/-0.1236
=-52.75***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Sleep Number  (NAS:SNBR) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Sleep Number Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Sleep Number's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Sleep Number Business Description

Traded in Other Exchanges
Address
1001 Third Avenue South, Minneapolis, MN, USA, 55404
Sleep Number Corp. is a wellness technology company engaged in the design, manufacturing, marketing and distribution of sleep solutions. The Company generates revenue by marketing and selling its smart beds directly to new and existing customers through its vertically integrated, exclusive, direct-to-consumer retail touch points including Stores, Online, Phone, and Chat (Total Retail). The products offered by the company are Mattresses, Bedding, Pillows and Furniture.
Executives
Phillip Eyler director C/O HARMAN INTERNATIONAL INDUSTRIES, INC, 400 ATLANTIC STREET, STAMFORD CT 06901
Francis K Lee officer: EVP & CFO 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Samuel R Hellfeld officer: SVP Chief Legal & Risk Officer 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Brenda J Lauderback director IRWIN FINANCIAL CORPORATION, 500 WASHINGTON STREET, COLUMBUS IN 47201
Julie Howard director MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Michael J Harrison director 200 DOMAIN DRIVE, STRATHAM NH 03885
Joel Joseph Laing officer: Treasurer & CAO 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Angel L Mendez director C/O SLEEP NUMBER CORPORATION, 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Kevin Kennedy Brown officer: SVP and CMO 9800 59TH AVENUE NORTH, MINNEAPOLIS MN 55442
Christopher D Krusmark officer: SVP & Chief H.R. Officer 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Daniel Alegre director 9800 59TH AVENUE NORTH, MINNEAPOLIS MN 55317
Jean Michel Valette director 28 MAPLE AVE, KENTFIELD CT 06897
Melissa Barra officer: SVP, Chief Strategy & CRO 9800 59TH AVENUE NORTH, MINNEAPOLIS MN 55442
Shelly Radue Ibach officer: Senior VP - U.S. Retail Sales 6105 TRENTON LANE NORTH, MINNEAPOLIS MN 55442
Robert Joseph Poirier officer: VP, CAO 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55442